Why Am I Getting Mail From the IRS?

The Internal Revenue Service, or IRS, primarily communicates with taxpayers through official mail delivered by the United States Postal Service. Receiving a letter does not automatically signal a serious problem; it is the agency’s standard method for a range of communications. These letters can be for purely informational purposes, to ask a question about your tax return, or to notify you of an adjustment. The first step is to open the correspondence and read it carefully rather than ignoring it.

Decoding Your IRS Correspondence

The first action upon opening mail from the IRS is to identify the specific type of correspondence you have received. Look to the top or bottom right-hand corner of the document for a notice or letter number. This identifier is formatted as “CP” followed by a number for a notice, or “LTR” followed by a number and sometimes a letter for other correspondence. This code helps you understand the purpose of the communication and what, if any, action is required from you.

Notices, marked with a “CP” code, are computer-generated and sent out for a wide range of specific issues, such as a math error on a return or a balance due. Letters, identified with an “LTR” code, often address more complex or unique situations that may require a more detailed review from an IRS employee. Once you have located the number, you can use the search function on the IRS website to find a detailed explanation of what the correspondence means and the steps you should take.

Common Reasons for IRS Mail

The reasons for receiving mail from the IRS are varied. Many notices are informational, while others require a specific action. Understanding the category your notice falls into is the next step after identifying it.

Balance Due

One of the most common reasons for an IRS notice is to inform you of a balance due. This means the agency’s calculations show you owe more tax than what was paid with your return. A notice like the CP14 is the first bill sent when you have an unpaid tax balance. These situations can arise from a math error on your tax form, an underpayment of estimated taxes, or the assessment of penalties and interest. The notice will detail the amount owed, including any penalties and interest, and provide a due date for payment.

Changes to Your Tax Return

The IRS may send a letter because it has made changes to your tax return. This can happen if the information you reported does not match the data the IRS received from third parties, such as employers or financial institutions. A frequent example is the CP2000 notice, which is not an audit but a proposal of changes based on mismatched income or payment information. Other adjustments could involve corrections to credits or other deductions.

Information Requests

Sometimes, the IRS simply needs more information to process your return accurately. You might receive a letter asking you to verify your identity to protect you from tax-related identity theft, a measure that prevents fraudulent returns from being processed under your Social Security number. In other cases, the IRS may request documentation to support a deduction or credit you claimed, such as receipts for charitable donations or records related to educational expenses.

Refund Information

Correspondence from the IRS can also be related to your tax refund. A notice might inform you that your refund amount has been adjusted, either increased or decreased, due to corrections made by the agency. Another possibility is that your refund has been used to offset other outstanding debts. This can include past-due federal taxes, state income tax, child support, or other federal non-tax debts. The notice will specify the amount of the offset and which agency received the payment.

General Notifications

Not all mail from the IRS requires a direct response or indicates an issue with your return. The agency sends correspondence for general notification purposes as well. You might receive a letter confirming that you have successfully created or updated an online account with the IRS. Other informational mailings include reminders to make quarterly estimated tax payments or a confirmation that your request for a payment plan has been approved.

Information and Documents to Gather for Your Response

Before you respond to an IRS notice, it is important to gather all relevant information and documents. Being prepared will make the process smoother, whether you plan to call the IRS, write a letter, or have a tax professional assist you.

• The IRS notice or letter itself, which contains specific details you will need to reference, such as the notice number and the tax year in question.
• The specific tax return for the year mentioned in the notice, which you will need to compare with the details in the IRS correspondence.
• All supporting documents related to the issue, such as your Forms W-2, Forms 1099, receipts for deductions, closing statements from a home sale, or bank statements.
• Copies of any previous correspondence you have sent to or received from the IRS regarding the same issue, along with the Social Security numbers for everyone listed on the tax return.

How to Respond to the IRS

Once you have decoded the notice and gathered your documents, the next step is to formulate your response. The method you choose will depend on whether you agree with the notice, disagree, or need to provide payment.

Responding with Payment

If you agree with the notice and owe a balance, the most direct response is to pay the amount due by the deadline specified. The IRS offers several payment options. IRS Direct Pay allows you to pay directly from a checking or savings account for free on the agency’s website. You can also pay with a debit card, credit card, or digital wallet, though third-party processing fees may apply. If you prefer to mail a payment, send a check or money order with the payment voucher included with your notice to the address provided. Never send cash through the mail.

Responding in Writing

If you disagree with the notice or need to provide additional information, a written response is often required. Your letter should clearly explain why you disagree and include your name, address, Social Security number, the tax year, and the notice number. Attach copies, not originals, of any supporting documents that substantiate your position. Send your response via certified mail with a return receipt requested, which provides proof that the IRS received your correspondence.

Responding by Phone

In some situations, calling the IRS may be an appropriate step. The phone number to call is located in the upper right-hand corner of the notice. Before you call, have all the documents you gathered, including the notice and your tax return, in front of you. Be prepared for potentially long wait times and take detailed notes of the conversation, including the date, the agent’s name, and any instructions or resolutions discussed.

Post-Response Expectations

After you have sent your response, the process is not immediately over. If you mailed a written response, allow at least 30 to 60 days for the IRS to process it and reply. The agency will send a letter confirming they have received your information or a letter detailing their decision. If you made a payment, you can verify it has been processed by checking your bank account or credit card statement, or through your IRS online account.